Broadcast: Mar 29 2003

Crude oil prices rebounded this week in New York to post their biggest gain in a year with the contract for May delivery closing at just over $30 a barrel. The 12 percent rise in oil this week is tied to a belief that the Iraq war will last longer than first expected.

Oil traders say it will be longer than had been expected before Iraqi crude is again flowing onto world markets. In just five days the oil price has rebounded from $25 a barrel back to $30. And there is ¹⁾caution about future price trends.

Equity markets moved in the opposite direction. The war rally that began in mid-March came to an abrupt halt. This week the Dow Jones Industrials were down four days out of five and the index lost 4 percent on the week.

Art Cashin is the floor trader at Paine Webber in New York, he says the celebratory rally turned into an Iraq ²⁾paralysis.

"Over the weekend we found out that the war turned out to be less unconventional then had been put forth. And I think that brought everybody back to bear. Obviously, there was concern about seeing prisoners of war. So we had 225 rally (3-21) that by Monday turned into a 325 point selloff (3-24). And since then we've had this kind of internal debate. We have an Iraq paralysis going on," Mr.Cashin spoke on CNBC television,

The dollar was battered on world currency markets, enduring its biggest weekly loss against the euro in eight months. The euro rose to just under one dollar eight cents. The dollar lost nearly 3 percent against the euro, the currency used by 12 West European nations.

Barry Wood VOA News, Washington.

1.    caution [5kC:FEn]n.小心, 谨慎, 警告

2.    paralysis [pE5rAlisis]n.瘫痪, 麻痹